Management Commentary

The IASB met on 18 September 2024 to discuss targeted refinements to proposals for a revised IFRS Practice Statement 1 Management Commentary.

Scope of possible targeted refinements (Agenda Paper 15A)

The IASB discussed its approach to redeliberations and the scope of possible targeted refinements to proposals in the Exposure Draft Management Commentary.

The IASB was not asked to make any decisions.

Targeted refinements to proposals in Chapter 1–3 of the Exposure Draft (Agenda Paper 15B)

The IASB tentatively decided to clarify that:

1. the term ‘management’ can include a governing board of an entity; and
2. the revised Practice Statement does not specify who is required to authorise management commentary for issue.
   All 14 IASB members agreed with these decisions.

The IASB tentatively decided to acknowledge in the objective of management commentary:

1. the concept of management’s perspective.
   Thirteen of 14 IASB members agreed with this decision.
2. information about sustainability-related factors.
   Twelve of 14 IASB members agreed with this decision.

The IASB tentatively decided:

1. to acknowledge that management commentary complements other information in general purpose financial reports, including information in sustainability-related financial disclosures, if that information is provided outside of management commentary.
   Eleven of 14 IASB members agreed with this decision.
2. to extend the requirements for identifying the financial statements related to management commentary to identifying sustainability-related financial disclosures, if these disclosures are not part of the larger report that includes management commentary.
   Eleven of 14 IASB members agreed with this decision.
3. to require an entity to disclose the basis on which sustainability-related financial disclosures are prepared, if an entity prepares such disclosures.
   Thirteen of 14 IASB members agreed with this decision.
4. to give greater prominence to the requirements that apply to situations in which an entity is required by local law or regulation to include specific information in management commentary.
   Thirteen of 14 IASB members agreed with this decision.

The IASB tentatively decided:

1. to make the definition of ‘general purpose financial statements’ consistent with the definition set out in IFRS 18 Presentation and Disclosure in Financial Statements and in the Conceptual Framework for Financial Reporting; and
2. to include in the defined terms the definition of ‘sustainability-related financial disclosures’ set out in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information.
   All 14 IASB members agreed with this decision.

Indicative drafting—targeted refinements to proposals in Chapters 1–3 of the Exposure Draft (Agenda Paper 15C)

The IASB discussed indicative drafting changes to the proposals in Chapters 1–3 in the Exposure Draft.

The IASB was not asked to make any decisions.